Entrepreneurship in Turkey – Requirements and Privileges & All you need to know

Entrepreneurship in Turkey is one of the issues that are taken into consideration for obtaining a residence permit in Turkey and it has its own conditions and points.

The capital of Turkey is Ankara, a country part of which is located in the continent of Europe and the other part is in Asia.

That is why Turkey aspires to become a member of the European Union.

As a result, the Turkish government is trying to pass the country through the development process as quickly as possible.

It is worth noting that one of the ways to obtain a residence permit in Turkey is entrepreneurship.

Today, immigration to Turkey has become very easy through investment, and many people have been able to obtain Turkish citizenship in this way. Of course, this method of migration has its own circumstances and difficulties.

Below we will discuss the terms and characteristics of entrepreneurship in Turkey.

Previously, the Turkish Immigration Service had strict rules for immigration to Turkey. Even few people were willing to settle in Turkey through investment and other ways.

But in recent years, the rules and conditions for immigration to Turkey have become much easier with the major changes to laws by the Turkish Immigration Service.

Today, immigration to Turkey by investment is one of the first priorities for qualified people.

The importance of entrepreneurship in Turkey in recent years

The Turkish government strongly supports entrepreneurship and entrepreneurs in this country, from offering a special residence visa to tax cuts.

Foreign applicants also have two options for entrepreneurship and a positive impact on the Turkish national economy.

They can either work in their own name and pay taxes as defined by Turkish law, or they can establish a company in Turkey.

It is often said that quality is sacrificed for quantity in job creation processes in countries with developing economies.

This means that the reported increase in jobs is actually an increase in the number of low-paid service jobs. Such criticism was directed at Turkey, especially after the global crisis.

However, the success of the Turkish government in creating jobs in recent years cannot be underestimated.

In the past few years, the quality of jobs created and the level of income also improved, for various reasons, including the following:

• Geographical locations of a number of occupations
• Gender and age of employees and workers

The cost of creating a new job in Turkey

The cost of living and even entrepreneurship in Turkey is much lower than in many other countries, including Hungary, Austria, Germany and France.

At the same time, Turkey has a much stronger economy than other neighboring countries, such as Turkmenistan, Azerbaijan and Armenia.

So by investing in this country, people have a chance to achieve profitability more easily and more quickly.

Of course our suggestion to you is that you live in this country for a while first in order to be more aware of the situation in Turkey and choose the area you want to work in and even the city you want.

In this way, you can finally get a better and more profitable option.

Keep in mind that in order to stay in Turkey, you, as a foreigner, must apply for a residence permit.

Types of Entrepreneurship in Turkey

Entrepreneurship in Turkey, with good and developed economic conditions in Turkey, does not have simple conditions.

The applicants must apply for a residence permit in Turkey by submitting various documents to the Turkish Immigration Office.

But if this goal is achieved, it can be very profitable.

Types of entrepreneurship in Turkey include:

Registering a joint stock company

Joint stock companies are divided into two categories: a public joint stock company and a private joint stock company.

These types of companies require a capital of about 2,800 US dollars.

Entrepreneurs must inform the Turkish Immigration Department of the type of company before starting the registration process.

The number of investors in a joint-stock company must not be less than 5, and there is no limit to their number.

According to the laws in force in Turkey, in the general assembly of these companies, there must be persons from the Turkish Ministry of Commerce.

Limited Liability Company Registration

Entrepreneurs can obtain a residence permit in Turkey by registering a limited liability company.

In limited liability companies, the number of shareholders must be between 1 and 50 people.

These types of companies can be established in the presence of only one person and their starting capital requirement is around 10 thousand TL. There are no other restrictions on this method of registering a company in Turkey.

A group or joint project

In a joint venture company, one or two of the shareholders are responsible for the company’s performance and losses.

But other shareholders are only responsible for their shares and the capital they have invested.

Cooperative company

Another type of company in Turkey is the cooperative company. In this company, the shareholders must be at least two people.

All shareholders and capitalists are responsible for paying the company’s debts and loans.

Registration of companies in free zones in Turkey

People who have the ability to produce certain goods can start a company and a business by purchasing real estate or land to start a business in the areas given to them by the commercial management.

Applicants for entrepreneurship in Turkey can also use the appropriate banking facilities by setting up such companies.

Company registration process in Turkey

As we mentioned, registering a company in Turkey is not easy, but qualified people with good follow-up and information can start their business in Turkey in the shortest possible time.

In the beginning, it is better to get a visa and a short-term residence permit so that you can complete the company registration process in Turkey without any restrictions or pressures.

Steps to register a company in Turkey

• Submit the documents and attestation of the main shareholders to the Turkish Consulate.
• Providing the specific financial means for registering a company in Turkey.
• Presenting the scope of work and business specifications of the company.
• Obtain a tax number.
• Provide the company’s address.
• Employing and introducing a Turkish accountant and consultant with a salary of no less than $200.

Requirements for registering a company in Turkey

• Photograph.
• Passport.
• The name of the company.
• The scope of the company’s activity.
• Determining the share of each shareholder.
• Appointment of the CEO.
• Zip code and company address.
• A capital of not less than 15,000 liras.

It is worth noting that during the company registration process in Turkey, the presence of the CEO in Turkey is mandatory and he must be present at the immigration and company registration offices to implement each stage.

The period of company registration in Turkey is from 4 to 5 days, after which there is no need for the continuous presence of the company’s shareholders.

Company registration fees in Turkey

As we mentioned, by registering a company and starting an entrepreneurship in Turkey, you can obtain a work permit in Turkey.

Turkey has better economic status and prosperity than similar countries and could become one of the largest economies in Asia in the coming years.

However, there is a much lower cost of registering a company, and people can start an active and profitable business in Turkey with minimal cost.

Indicators affecting entrepreneurship and investment in Turkey

One of the most important things that applicants should consider regarding entrepreneurship in Turkey and investing in this country are the economic indicators that affect the investment and entrepreneurship process in this country.

Among the important indicators in this field are the unemployment rate, GDP and tax rates in this country.

The first indicator that affects the attractiveness of investors in a country is the unemployment rate in a country, as the unemployment rate in Turkey is close to 12%.

The size of the GDP also has many effects on investment in a country and actually reflects the dynamism and economic growth of the country.

Another major indicator that affects entrepreneurship and investment in Turkey is the tax rate.

The tax rate in Turkey was around 33% in the past several years and then decreased to 20%, and in 2019 this rate reached 22%.

How to start a business in Turkey

As mentioned, applicants who are entrepreneurs in Turkey must register a company in this country to start a business and start their own business.

The first step in starting a business and registering a company in Turkey is to provide tax and identity documents for the person and his partners according to the type of company.

The applicant must also prove his financial ability to start a business and entrepreneurship in Turkey, in addition to providing for himself and his family, by submitting a bank statement.

According to the type of company, the articles of association of the company must be prepared and the type of company’s activity in it should be determined.

The applicant must also apply to the Turkish Treasury to obtain a tax number, and after locating the company and referring to the inspectors of the Finance Department to verify the location, the company’s address is registered.

After completing these steps, by referring to the Turkish Chamber of Commerce, the company is registered and the announcement of its establishment is published in the official newspapers.

A bank account must also be opened in the name of the company and a person must be identified as a chartered accountant or financial advisor to the company.

Frequently Asked Questions

What is the best way to become an entrepreneur in Turkey?

The best way to start entrepreneurship in Turkey is to register a company.

What is the minimum capital required to register a company in Turkey?

The minimum capital required to register a company in Turkey is approximately 10 thousand Turkish liras.

After how many years can entrepreneurs in Turkey obtain permanent residence in Turkey?

Entrepreneurship applicants in Turkey, after 5 years of starting their work and working in this country, succeed in obtaining permanent residence in Turkey.

Is it necessary to submit a business plan to register a company in Turkey?

Yes, in order to register a company in Turkey, a business plan must be submitted.